Osmosis, a decentralized exchange, or DEX, on the Cosmos blockchain, has raised $21 million in a token sale led by VC Fund Paradigm along with a consortium of investors including Robot Ventures, Nascent, Ethereal and Figment.
Osmosis allows developers to build custom automated market makers, or AMMs, with sovereign liquidity pools. DEX uses a native token called OSMO for governance and storage, and currently holds a total of $544 million.
The project claims to provide super fluid buildup and instant mass confirmation. Superfluid Staking allows cash holders to stake their LP coins to earn exclusive rewards in OSMO. This gives token holders the ability to maximize betting returns and liquidity while maintaining the security of the network. Instant block confirmations create a Miner-Extractable-Value, or MEV, which prevents traders from cherry-picking transactions on the network.
Paradigm, an investment firm known for its focus on DEX platforms, brings osmosis to its DEX portfolio along with Maker, Synthetic, Uniswap, Optimism, FTX, Coinbase and BlockFi. The company’s stake in Osmosis is its first investment in the Cosmos ecosystem. All of its other holdings were in the Ethereum-based DEX platforms.
Charlie Noyes, investment partner at Osmosis, stated that “Osmosis is the first investment in AMM outside the Ethereum ecosystem. Osmosis contributors are a global team of engineers, product creators and operators who bring the right product to market at exactly the right time” model:
“The launch of IBC, Cosmos’ cross-chain interoperability protocol, has set off a Cambrian explosion of developer activity and experimentation. Osmosis is the natural center of gravity for liquidity in Cosmos’ nascent Defi ecosystem.”
The platform’s successful fundraising comes on the heels of an increase in traffic growth since the launch of the new blockchain communication protocol in March. The new protocol allows digital assets to be transferred between chains in the network. Osmosis has achieved the highest number of token transfers through the IBC protocol in the past month.
The main design concept behind the Cosmos blockchain is the “Internet of Blockchains,” according to the project’s white paper. The Cosmos Network consists of its main chain, called the Cosmos Hub, which is the backbone of a network of decentralized and interconnected blockchains that includes the Binance Smart Chain.